Omar and Patrick Sell Magazine Subscriptions by Telephone

question 71

Multiple Choice

Omar and Patrick sell magazine subscriptions by telephone. Omar is paid $1.00 for every five calls he makes, while Patrick is paid $1.00 for every subscription he sells. Omar is paid on a ________ schedule while Patrick is paid on a ________ schedule.

• A)fixed ratio; variable ratio
• B)fixed ratio; fixed interval
• C)variable ratio; fixed ratio
• D)fixed ratio; variable interval

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Definitions:

Conversion Cost

The sum of direct labor and manufacturing overhead costs that are required to transform raw materials into finished goods.

Depreciation

The methodical distribution of the expense of a physical asset throughout its expected lifespan.

Oven

An enclosed compartment, usually part of a stove, used for cooking and baking.

Factory Supplies

Items used in the manufacturing process that are not directly part of the final product, including cleaning supplies, tools, and machinery maintenance materials.